China to limit construction of new solar panel factories

China, the world's biggest maker of solar panels, will limit construction of new photovoltaic manufacturing plants to curb excess capacity in a move that may encourage consolidation within the industry.

New solar plants that "purely" expand capacity will be strictly banned, the Ministry of Industry and Information Technology said in a statement on its website yesterday.

Annual spending by companies for research and development and upgrading equipment must total at least 3 per cent of revenue and must exceed 10 million yuan (HK$12.6 million).

Chinese authorities have pledged to cut overcapacity in industries from steel to paper as policy makers seek to reduce the economy's reliance on investments and exports.

A global oversupply of solar panels led to a 20 per cent plunge in prices last year, according to data.

The policy will slow efforts to expand production capacity in favour of mergers and acquisitions as a growth strategy for the biggest companies, said Angelo Zino, an analyst with S&P Capital IQ in New York.

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

POWER RAIL™ Commercial Mounting System

POWER RAIL™ Commercial Mounting System

The Power Rail™ Commercial Mounting System is designed with the professional PV solar installer in mind. Both the XD/UD and LD/MD rails feature single tool assembly with the revolutionary patented RAD™ Lock-in-Place bolt for fast and secure module clamping. The high strength marine-grade aluminum rails include an integral wiring channel for securing cables and providing a professional finish.